The Security Deposit Disposition Letter is a critical document used at the conclusion of a residential tenancy in England and Wales. It is designed to provide a clear and transparent breakdown of how a tenant's security deposit has been handled, including any deductions for damages, unpaid rent, or other permitted charges. The letter must comply with strict regulatory requirements under various housing acts and deposit protection schemes. This document helps prevent misunderstandings and provides a formal record that can be used in case of disputes. It should be issued promptly after the end of the tenancy and include all relevant calculations and justifications for any deductions made.
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1. Sender and Recipient Details: Full names and addresses of both landlord/agent and tenant(s)
2. Property Reference: Address of the rental property and relevant tenancy period dates
3. Deposit Information: Original deposit amount, protection scheme details, and deposit protection certificate reference
4. Deduction Details: Itemized breakdown of any deductions with specific amounts and justifications
5. Final Settlement Amount: Net amount to be returned after any deductions and calculation explanation
6. Payment Instructions: Bank details or payment method specifications for deposit return
1. Dispute Resolution Notice: Information about available dispute procedures and timelines, included when deductions are made or likely to be contested
2. Evidence Reference: List of supporting documentation for deductions, included when deductions are being made
3. Multiple Tenant Distribution: Breakdown of deposit return amounts per tenant, included for shared tenancies with multiple tenants
1. Schedule A - Deduction Evidence: Photographs, invoices, quotations or other evidence supporting any deductions made
2. Schedule B - Final Inspection Report: Copy of the final property inspection report detailing condition at end of tenancy
3. Schedule C - Original Inventory: Reference copy of check-in inventory and schedule of condition
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